As a result of the tariffs recently imposed by the US, the EU Commission imposed provisional safeguard measures concerning imports of a number of steel products, addressing the diversion of steel from other countries to the EU market. The measures are intended to protect the EU steelmakers and workers in the steel industry, while nevertheless ensuring that the EU market remains open, maintaining traditional trade flows.
The provisional measures concern 23 steel product categories and has the form of a Tariff Rate Quota (TRQ). For each of the 23 categories, tariffs of 25% will only be imposed once imports exceed the average of imports over the last three years. The quota is allocated on a first come first serve basis, thus at this stage not allocated by individual exporting country. These measures are imposed against all countries, with the exception of some developing countries with limited exports to the EU. Given the close economic links between the EU and the European Economic Area (EEA) countries (Norway, Iceland, and Liechtenstein), they have also been exempted from the measures. These exclusions are compatible with both the EU’s bilateral and multilateral Word Trade Organisation (WTO) obligations.
The provisional safeguard measures, effective from July 19, can remain in place for a maximum of 200 days. O the basis of further findings and investigations by the Commission, definitive safeguard measures may be imposed as a result at the latest by early 2019.